The cure for the inventory shortage is sitting right in front of us
The Home Sales Predictor shows a continued increase in home sales as we move into 2021
We learned a lot in 2020.
We learned how to innovate in all new ways. We learned how to pivot at a moment’s notice as shutdowns spread. We learned new ways to use our technology. And, as Helen Hanna Casey put it during last week’s RISMedia’s Rocking in the New Year event, “we are better prepared than any year beforehand.”
While there was a lot we’d like to leave behind in 2020, these lessons learned, and skills gained are something to be grateful for.
One of the things that came out of 2020 for us at MoxiWorks was our Home Sales Predictor. The Home Sales Predictor predicts the trends of real estate agent activity within our products and the correlation to closed residential real estate transactions. And our predictions have been within 2% of the actual number of home sales each month.
It’s been so encouraging to see the way our industry bounced back this year and it seems that trend is bound to continue. Let’s take a deeper look.
2021 Homes Sales Predictor – January & February
Based on activity inside our products during November and December of 2020, we predict there will 422K and 447K home sales in January and February respectively. Take a look at the graph below to see the continued trend of this correlation.
The graph above shows there was the usual dip we would expect to see around the holidays (everyone needs to take some time to rest and recharge, especially this year). But, we are confident we will see the trend of home sales continue to pick back up as we are already expecting to see a 30% increase YOY from Jan 2020 and a 33% increase YOY from Feb 2020.
Curing the inventory shortage
“For years we’ve discussed that there is no need to limit ourselves to an average of only 5 million home sales each year,” said MoxiWorks CEO, York Baur.“So why has the industry continued to settle at this milestone?”
In 2020, there were 5.65 million home sales AND that is with a pandemic vs. the 5.25 million in 2019.
“For better or worse, this pandemic forced many agents to do what they hadn’t always done before and that’s make the market,” said Baur.
The inventory is there, it just has to be uncovered.
Let’s make the market
This is our battle cry for you and your agents for 2021. Don’t be a victim to the market, make the market.
Be proactive and give your clients the knowledge they need to make the decision to sell their home. The more knowledge you can disseminate to your clients, the more likely their confidence grows to transact. Agents should be a trusted resource who gives their clients annual, or even quarterly, property reviews keeping them abreast of their homes worth, but also the worth of homes in their area.
“2021 is going to be the year where the agent and brokerage that knows how to get listings is going to drive by the brokerage that is too focused on buyers,” says Baur. “If you can be better at finding and winning listings than your competitor, you are going to win.”
2020 proved that we can make the market. So let’s get out there and sell more homes together.
The Home Sales Predictor is a brand-new set of prediction data that dives into the number of presentations created and the correlated number of U.S. home sales. This data is provided by MoxiWorks with insights from their MoxiPresent product.